Many self-proclaimed entrepreneurs send me invitations and accolades to join their favorite Multi-Level Marketing (MLM) or Network Marketing company, but these all sound like "get rich quick" schemes to me. For me, the essence of an entrepreneur is creating something new and innovative, whereas an MLM is a traditional formula on an existing product with a high premium on pyramiding.


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No, It is not advisable to buy MLM leads. The company which is selling you leads won’t guarantee any sales from those leads. In fact the conversion rate from those leads won’t be much. Think you have spent few dollars for those leads and ended up with less conversion rate than what you have expected; you lost both money and time. Why did i mention time here? Yes, you lost the time while waiting for the leads, which you are in conviction, that they will be converted into customers. Instead you can learn some skills, Copywriting skills, for enticing the real customers into your MLM Business.


I found your article interesting. My wife and I have been involved with AdvoCare since November 2011. Even if I never make another dime in AdvoCare, I will continue to use the products because they have worked and continue to work for us. What I find interesting is the statistic that the majority – 99.7% in MLM actually “lose” money. What is the context of that statistic? That would mean A: the majority of MLM companies don’t have a buyback or return policy B: people that get started with MLM’s have to take on much more inventory that they are able to sell or C: this statistic is not accurate. I believe that C is the right answer. I do agree there are flaws in the MLM industry just as there are flaws in every industry. However, I believe that the MLM industry has made huge improvements in recent years and we do have a better way. People are the variable. When you have a great product, a passion and purpose that drives you everyday, are teachable and coachable, and love others as much as you love yourself, you can be successful in this business. Through the process of investing in your own personal development and learning to serve others, you are able to lead others to do the same. Thanks again. I look forward to reading more from you in the near future.
Great job on the top 25 MLMs. Really like what you’re doing for the industry as a whole. Your analysis is spot on. However, a closer look at retention rates for each company might give you another perspective on the value proposition of any given company. As a Doterra Wellness Advocate we are told by our corporate execs that we have a 65% retention rate with customers repurchasing the product within 3 months. And that if we based it on the industry standard of 12 months our retention would go up to 85%. I’m told that this is unprecedented in network marketing. So I’m believing that Doterra is succeeding because its selling a product that works and that users and word-of-mouth drive the business in the long run.

Even truthful testimonials from the very small minority of participants who do earn career-level income or more will likely be misleading unless the advertising or presentation also makes clear the amount earned or lost by most participants. (For more information on this topic, see the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising.)


Technically speaking, pyramiding is an illegal practice of a company that solicits their members to recruit more members, more than selling the product. In turn, the primary source of income for its members is the number of members they have recruited instead of the products they have sold over time. Clearly, not all MLMs are pyramid schemes, but it all seems like a matter of degree.
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Belonging to a self-regulatory organization, however, does not shield MLMs engaged in unfair and deceptive practices from FTC law enforcement action. Under appropriate circumstances, the FTC can and will bring law enforcement actions against companies that claim to follow self-regulatory guidelines but in practice do not. Similarly, the FTC can and will bring law enforcement actions against companies that, despite following such guidelines, nonetheless violate the FTC Act.
The support factor was key. Once the MLM leads were purchased, was there somehow support in case of need? The support should be somehow resolving issues that arise, including bad mlm leads, wrong numbers or emails, and general problems. The MLM Leads companies we found that were the best, had a support system. And some type of guarantee also should be part of the network marketing lead program.
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The formula of future business growth is based on the idea that people don't just want to retire in a traditional format. They crave knowledge and want to feel relevant.  They want to improve their own transition and feel compelled to help others avoid the pain and pitfalls they have experienced.  They desire a supportive community where their opinion counts and they can openly ask personal, business or other questions.  They’re interested in hearing and exploring new ideas and need ways to make new connections through face-to-face interactions.
Agree with most of your comments. Born and raised in the corporate community, we never even considered a MLM until came across one after retirement. Looking back we would have looked seriously at the industry much earlier. In any event, we had one good run until management made a few very bad decisions…killing 40 % of our business. But now we’ve found a new home with WGN. Among the many differences is they’re a technolgy company operating as a MLM…go figure.

MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils. And the Regulations require Chinese or foreign companies ("FIEs") who intend to engage into direct sale business in mainland China to apply for and obtain direct selling license from the Ministry of Commerce ("MOFCOM").[63] In 2016, there are 73 companies, including domestic and foreign companies, that have obtained the direct selling license.[64] Some multi-level marketing sellers have circumvented this ban by establishing addresses and bank accounts in Hong Kong, where the practice is legal, while selling and recruiting on the mainland.[10][65]
Is Home Depot going to run a class on how to make submarine sandwiches? No. Makes no sense, right? Would people be attracted to that? Like that one I might attend. I like submarine sandwiches, they’re pretty good. That I might attend but I’m going to go there and be like why am I in a building supply company? I’m not going to buy anything. It doesn’t make sense.
FLP may not be the wealthiest MLM on this list, but they deserve a spot because of their long-term dedication to the aloe vera plant and products made from it. Few MLMs display such product dedication and integrity as FLP. And few MLM’s have such a concentrated niche. That screams longevity over the other hundreds of other “full service wellness” companies. 

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The Direct Selling Association (DSA), a lobbying group for the MLM industry, reported that in 1990 only 25% of DSA members used the MLM business model. By 1999, this had grown to 77.3%.[26] By 2009, 94.2% of DSA members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales.[27] Companies such as Avon, Electrolux, Tupperware,[28] and Kirby were all originally single-level marketing companies, using that traditional and uncontroversial direct selling business model (distinct from MLM) to sell their goods. However, they later introduced multi-level compensation plans, becoming MLMs.[23] The DSA has approximately 200 members[29] while it is estimated there are over 1,000 firms using multi-level marketing in the United States alone.[30]


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This eco-friendly MLM is seriously committed: their headquarters are operated with wind power. They’re pretty future-facing in general, having implemented an innovative social marketing strategy amongst their reps. No one likes to be harassed on Facebook, but Modere’s social media plan is still 10 times more effective than holding home parties (kill me).
This eco-friendly MLM is seriously committed: their headquarters are operated with wind power. They’re pretty future-facing in general, having implemented an innovative social marketing strategy amongst their reps. No one likes to be harassed on Facebook, but Modere’s social media plan is still 10 times more effective than holding home parties (kill me).
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